Traders remained divided on the outlook of base metals last week. A section of the traders was of the view that copper would drive all base metals on the LME, while others doubted if the last week's recovery might sustain for long amid the growing use of substitution. Plastic and other substitutes have been fast restricting use of metals in infrastructure and heavy engineering.
Bulls anticipate that the workers' strike in Xstrata, the world's third-largest copper producer, would continue and the company's output would decline heavily in the days ahead.
The strike that began on August 7 resulted in a sharp fall in output, a company executive said.
In an another development, First Quantum Minerals, another large copper producer, reported a drop in output in the second quarter because of heavy rainfall at its Bwanaonshi project in Africa.
However, an another school of thought argued that the base metals had already dropped heavily last week and would now go up.
Meanwhile, copper and other base metals in London fell on continuing speculative liquidation on further steep falls in global equities due to signs of widening sub-prime problems, said analysts. Technical momentum accelerated the selling.
Last week on the LME, copper lost 7 per cent to $7455 on 8.5 per cent inventory additions. Copper stocks on the LME-registered warehouses recorded additions of 8.5 per cent or 8850 tonnes to settle the week at 1,14,500 tonnes.
Aluminium closed 5 per cent lower at $2518 while tin, zinc, lead and nickel declined 3 per cent, 6 per cent, 15 per cent and 14 per cent to end the week at $15830, $3320, $2873 and $25405 respectively.
Meanwhile, aluminium inventories slumped marginally to 8,33,325 tonnes from 8,37,925 tonnes.
Lead and zinc stocks also witnessed a heavy fall of 8.36 per cent and 4 per cent to 32,575 tonnes and 63,175 tonnes from 35,550 tonnes and 65,825 tonnes respectively in the beginning of the week. In contrast, nickel and tin inventories surged to 18,804 tonnes and 14,330 tonnes from 15,138 tonnes and 14,150 tonnes respectively.
Domestic base metals traders, however, stayed away from the market because of high volatility in the benchmark LME. "We know the price is going to stabilise over a period of time. Hence, we prefer to wait and watch till the price normalises," said Surendra Mardia, a local trader.
Indian metal markets remained calm throughout the week with nickel cooling down 11 per cent to Rs 1325 a kg and copper wire bar slipping 3.61 per cent to Rs 374.
Copper cable scrap, heavy scrap and utensil scrap in Mumbai non-ferrous metals market slumped 4.17 per cent to Rs 345 a kg, 4.23 per cent to Rs 340 and 2.52 per cent to Rs 309 respectively.
Bulls anticipate that the workers' strike in Xstrata, the world's third-largest copper producer, would continue and the company's output would decline heavily in the days ahead.
The strike that began on August 7 resulted in a sharp fall in output, a company executive said.
In an another development, First Quantum Minerals, another large copper producer, reported a drop in output in the second quarter because of heavy rainfall at its Bwanaonshi project in Africa.
However, an another school of thought argued that the base metals had already dropped heavily last week and would now go up.
Meanwhile, copper and other base metals in London fell on continuing speculative liquidation on further steep falls in global equities due to signs of widening sub-prime problems, said analysts. Technical momentum accelerated the selling.
Last week on the LME, copper lost 7 per cent to $7455 on 8.5 per cent inventory additions. Copper stocks on the LME-registered warehouses recorded additions of 8.5 per cent or 8850 tonnes to settle the week at 1,14,500 tonnes.
Aluminium closed 5 per cent lower at $2518 while tin, zinc, lead and nickel declined 3 per cent, 6 per cent, 15 per cent and 14 per cent to end the week at $15830, $3320, $2873 and $25405 respectively.
Meanwhile, aluminium inventories slumped marginally to 8,33,325 tonnes from 8,37,925 tonnes.
Lead and zinc stocks also witnessed a heavy fall of 8.36 per cent and 4 per cent to 32,575 tonnes and 63,175 tonnes from 35,550 tonnes and 65,825 tonnes respectively in the beginning of the week. In contrast, nickel and tin inventories surged to 18,804 tonnes and 14,330 tonnes from 15,138 tonnes and 14,150 tonnes respectively.
Domestic base metals traders, however, stayed away from the market because of high volatility in the benchmark LME. "We know the price is going to stabilise over a period of time. Hence, we prefer to wait and watch till the price normalises," said Surendra Mardia, a local trader.
Indian metal markets remained calm throughout the week with nickel cooling down 11 per cent to Rs 1325 a kg and copper wire bar slipping 3.61 per cent to Rs 374.
Copper cable scrap, heavy scrap and utensil scrap in Mumbai non-ferrous metals market slumped 4.17 per cent to Rs 345 a kg, 4.23 per cent to Rs 340 and 2.52 per cent to Rs 309 respectively.
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